Hi team. You may have heard already that Royal Bank has reportedly decided to sell it’s US banking operations.
Media reports this morning carried stories like: (Yahoo News) “Royal Bank of Canada has reportedly agreed to sell its money-losing retail banking operations in the United States to PNC Financial Services Group Inc. for $3.45 billion, a move that would finally bring an end to the bank’s foray south of the border.”
I think that the important words in that statement are ‘”money-losing”. No one can or should keep a plan of action rolling if it isn’t financially viable.
However, the reality of the situation is that there are still plenty of options for those who are intent on investing in U.S. properties. If you look at the complete picture, the report goes on to say that “Canada’s big banks have had mixed success with their ventures into the world of U.S. retail banking. TD Bank bet big when it acquired its operations first with a majority interest in Banknorth and then consolidating its ownership in 2007. Since then the U.S. franchise has grown to more than 1,250 branches up and down the East Coast with deals for Commerce Bank in 2008 and South Financial Group in 2010. And while Bank of Montreal started with a smaller franchise in the Chicago area similar to RBC’s investment in the U.S. southeast it has since doubled down with its $4-billion purchase of Milwaukee-based bank Marshall & Ilsley Corp.”
Lots of options! Life in context. Business as usual.